Two weeks ago, Walmart (NYSE:WMT) sued Tesla (NASDAQ:TSLA).Source: fotomak / Shutterstock.com The complaint, filed in New York state court, accuses Elon Musk's company of "widespread, systemic negligence" that caused Tesla's solar panel systems to spark fires at "no fewer than seven Walmart stores."The lawsuit may not inflict much direct economic harm on Tesla, but the company's reputation could suffer a serious blow from the fact that its giant corporate customers are litigating and griping.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShortly after Walmart filed suit, for example, Amazon (NASDAQ:AMZN) complained that a blaze on the roof of one of its Southern California warehouses also involved a Tesla solar panel system. Tesla called it "an isolated incident."Unfortunately for Tesla, these "isolated incidents" are piling up like kindling around a funeral pyre. Tesla's Trouble Could Benefit SunPowerAccording to the Better Business Bureau, Tesla takes the grand prize for most customer complaints per solar megawatt installed. During the last year, the Bureau received an average of 20 customer complaints per 10 megawatts of solar capacity installed by Tesla. * 7 Discount Retail Stocks to Buy for a Recession That number of complaints was more than seven times the number of complaints about SunPower (NASDAQ:SPWR).Not surprisingly, as customer lawsuits and complaints accumulate around Tesla, its growth trajectory is atrophying. Even prior to the Walmart lawsuit, Tesla's solar operations had been losing market share and gaining negative press. In fact, Tesla's solar installations have been trending lower for several years, even though the total volume of U.S. solar installations has been growing.Meanwhile, the company's more well-known electric vehicle business is also facing a series of setbacks and skeptics. Tesla stock is down 35.1% over the past two years.Against this backdrop of dwindling installations, the Walmart lawsuit is unwelcome news for Tesla. Walmart has been a major customer. It has leased roof space at 240 stores to Tesla to install and operate solar systems.Clearly, Tesla will not be signing up a 241st Walmart rooftop any time soon. On the contrary, Walmart is already signing new installation agreements with alternative solar system providers … including SunPower.I recommended SunPower stock to my subscribers in the July issue of my newsletter, Fry's Investment Report -- and those shares have already made peak gains of better than 30%.It is probably no coincidence that Walmart struck a new installation contract with SPWR stock last year, soon after Tesla's solar panels began detonating on the retailer's rooftops. Specifically, Walmart contracted with SunPower to install solar systems at 21 sites in Illinois -- 19 stores and two distribution centers.Contract "wins" like these are a big part of the reason why SunPower's solar deployments are ramping up so significantly. SunPower stock is already the No. 1 provider of solar systems to U.S. commercial and industrial customers like Walmart and Target (NYSE:TGT).In other words, Tesla's troubles in the solar industry can be nothing but good news for SPWR stock - and the Fry's Investment Report portfolio.Along with Tesla there are a lot of companies out there jumping on the solar bandwagon, and there is clearly a lot of investing potential here.The International Energy Agency (IEA) anticipates global spending on solar power to total $4 trillion over the next two decades -- or about $180 billion per year.But it's all about finding the right companies that offer significant long-term potential.That's why I've released an "all solar" edition of Fry's Investment Report.In it, besides SPWR stock, I share other recommendations to get investors in on this technology's profit ground floor. And I've packed it full of other research laying out my case for solar's blindingly bright future.To learn more, I strongly suggest you go here to find out how to join Fry's Investment Report.Eric Fry is a 30-year international finance expert, former hedge fund manager, and InvestorPlace's resident expert on global investment trends. He founded his own investment management firm and served as a partner several others. One of the few analysts who predicted the last big market crash, in 2007-'08, Eric showed his readers how to profit off of companies that eventually went bust. His readers could have walked away with gains like 1,415% on Countrywide Financial, 4,408% on Fannie Mae, and even 6,425% on Freddie Mac. With Fry's Investment Report, Eric's goal is to track the world's biggest macroeconomic and geopolitical events - and help investors make big gains from those emerging opportunities. Click here to learn more. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post What Happened After Walmart Sued Tesla appeared first on InvestorPlace.

Nio (NYSE:NIO) should be a better investment than it is, but Nio stock looks as if it's going to lose the EV race in a big way.Source: THINK A / Shutterstock.com The electric car revolution is coming and investors are readying their portfolios. Not only are the quieter and cheaper to run than their combustion-engine counter parts, but they're seen as better for the environment which has helped them catch on in heavily polluted places like China.However, while electric cars themselves are destined to gain momentum over the next decade, electric car stocks are another story. Some appear to be based solely on hope for the industry rather than solid fundamentals and that's the case when it comes to Nio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBack in March NIO stock was flying high at $10 per share as investors likened the firm to Tesla (NASDAQ:TSLA). However, the enthusiasm quickly faded after the firm's lofty future plans started to look flimsy as its earnings pointed to a much rockier future. With Nio's stock price down to just $3 per share today, you might be wondering if there's a bargain to be had-- but I'd hold off as the stock isn't all its cracked up to be. The Trouble with Nio StockWhile there will undoubtedly be a huge market for electric vehicles in China over the next few years, it's important to note that investing in NIO doesn't necessarily mean you'll get a piece of that pie. * 7 Discount Retail Stocks to Buy for a Recession As Luke Lango pointed out, there are 486 EV companies currently operating in China. Although China has a massive population and there's certainly room for more than one player, that's a lot of competition. In America there are between 20 and 30 EV firms serving the market.That means that the next few years will likely bring on the demise of quite a few Chinese EV players. More companies will fail than will make it, so you have to pick your player wisely.With those terrible odds in mind, NIO stock may not be your top pick. For one thing, the firm has elected to go with a platform outside the mainstream to run its cars.Beijing has gotten behind a standardized platform called MEB which big names like Ford (NYSE:F) and Volkswagen (OTCMKTS:VLKAY) are also supportive of. NIO has elected to go its own way with a different platform, which could create regulatory issues down the road. Recovery Depends on DeliveriesIn any case, those factors which cast a bearish shadow over NIO stock were true back in March when investors were singing the automaker's praises and bumping its share price up to $10.What brought NIO back to earth was a poor earnings release that showed vehicle deliveries were lower than expected. Since then, deliveries haven't made a meaningful improvement- July deliveries came in at just 837. August deliveries will be the true reflection of whether or not the March earnings were the beginning of the end for NIO. The company was forced to recall a number of its vehicles due to battery issues, which management said was largely to blame for the poor delivery figures in June and July. In August, management is expecting to deliver somewhere between 2,000 and 2,500 vehicles. Hitting that target would send a positive message to Wall Street and put the buy-case for NIO back on the table. However, another month of dismal deliveries says NIO is heading for rock bottom. The Bottom Line on Nio stockThere's no urgency to buy NIO stock right now. The firm is due to release its August delivery figures at the end of September and I'd wait for that to even consider adding Nio to your portfolio.However, even if the August numbers hit management's guidance, NIO is risky. It's hard to pick out a clear winner in such a large and diverse field, but choosing the one that has gone against Beijing's standardized platform seems to be a risky strategy.If you're looking to buy "the Tesla of China," perhaps you should just buy Tesla-- the firm is building its own factory in Shanghai and its cars are not subject to the 10% purchase tax that its foreign peers are weighed down by. For now, NIO is a no-go for me at least until deliveries are firmly back on track.As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post As Huge as the EV Market Will Be, Nio Stock Isn't Worth the Risk appeared first on InvestorPlace.

Many people colloquially refer to Nio (NYSE:NIO) as the Tesla (NASDAQ:TSLA) of China. The term is meant to describe the company's attractive and futuristic electric vehicles. The problem is, like Tesla, Nio is running a race to long-term profitability that still seems elusive.Source: Shutterstock However, a greater concern for investors regarding Nio stock is viability, not profitability. The EV market in China is saturated and the company is lagging behind in sales. Compounding Nio's problem is that Tesla will soon produce cars in Shanghai. Tesla also has an exemption from the 10% purchase tax levied on most foreign car companies. Once that happens, it could be game over for Nio stock. Nio Has to Become a Leader in Its Home CountryThe bullish hope for Nio stock is the Chinese consumer. Although a McKinsey report confirms that China is the leading market for electric vehicles, it's reasonable to wonder just how big that market is. InvestorPlace contributor Josh Enomoto wondered the same thing when he pointed out that 35% of China's labor force works in the agricultural sector.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis makes EVs not only impractical, but also very expensive. Nio's flagship model, the ES8, lists for around $68,000. While this is a discount to Tesla, it's still hard to see that price gaining traction to an agrarian population. * 10 Battered Tech Stocks to Buy Now I expressed a different concern when I wrote about Nio stock one month ago. I pointed out that Nio is not the leader in the Chinese market despite government subsidies and a favorable regulatory environment. Without a strong presence in other markets, it's hard to see a path to profits. Just How Big Is the Electric Vehicle Market?The electric vehicle market is real and growing. However, much like when alternative energy solutions first came on the scene, mainstream acceptance is an economic, not an environmental, issue.In fact a 2017 survey conducted by Driving Tests, a driving test simulator, found that a majority of U.S. consumers across all age groups were not interested in owning an electric car. While Chinese consumers may be more accepting of electric vehicles, manufacturers are facing a reality that consumers want convenience. That's particularly valid when they are paying $68,000 for a car as they are with the Nio ES8. It's Not Just About Building CarsFor electric vehicles to gain widespread acceptance will require an entire infrastructure. This ecosystem includes safe, reliable batteries and convenient charging stations that are available in scale.Nio recently self-reported a battery recall for its ES8 vehicles. In fairness, the battery issue is an ongoing problem for many EV companies. However, the will and the money to build a scalable network of charging stations is a classic chicken-egg question.With the price of gasoline still at comparatively low levels and the threat of a recession that could bring prices even lower, it's hard to see consumers trading up to an electric vehicle, even if they really believe in the technology. Is It the Start of a Recovery or a Dead Cat Bounce?Nio stock is making a small recovery in advance of the release of its earnings report on September 24. The Nio stock price has climbed above a line of support at around $2.80. And at $3.22, it's hanging around its 50-day moving average.However, this move is happening on light volume. This supports my conclusion that traders are seeking a quick profit while they wait for the earnings report.For the past year, whenever Nio stock has broken above its 50-day moving average, the relative strength index has moved into the overbought range and the stock has quickly declined. Right on cue, the Nio stock price declined on September 11, breaking a six-day winning streak. As of this writing, it was heading for another down day. What's next for Nio Stock?In its earnings report, investors will be looking to see if the company has reversed its declining delivery numbers. Although analysts are expecting Nio to increase its revenue by 126.9% this year and 90% in fiscal 2020, those forecasts may change if Nio cannot prove that it can deliver sales.Even if Nio can reverse its declining sales numbers, what does winning look like? For all of their bravado, I believe that Nio's future may be as a buyout target. The future is bright for electric vehicles. But Nio as it presently exists may not be around to see that future.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post For Nio, the Future May Come Too Late appeared first on InvestorPlace.

Markets like calm and that is particularly true when it comes to Tesla (NASDAQ:TSLA). Tesla stock often is volatile to in large part to CEO Elon Musk having a penchant for the controversial and flamboyant. Source: Sheila Fitzgerald / Shutterstock.com At one point on Wednesday, Sept. 11, Tesla stock was higher by about 5% as the shares paced for their best intraday performance in seven weeks, extending the stock's September gain to 8%.That after Tesla stock dipped 7% in August. A simple tweet from Musk noting that Tesla's flagship Model S recently set the record for fastest four-door car at the Laguna Seca Raceway seemed to be the catalyst for Tesla stock on Wednesday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, there's much more to the story than that and investors should not caught up in something as superficial as an automotive test. Much of the Tesla story is a demand/production story, meaning can the company produce cars at a rapid enough rate to meet current demand and lure more luxury car buyers away from internal combustion engines (ICE) to electric vehicles.There are signs electric vehicle demand is growing, as expected. For example, Chilean lithium producer SQM recently said it plans to invest $2.1 billion over the next five years to bolster production of the material that is a vital ingredient in the production of the ion batteries that power electric vehicles. * 7 Discount Retail Stocks to Buy for a Recession Additionally, a recent permit application with the city of Fremont, Calif., Tesla's headquarters, indicates the company is looking to build another assembly line, which could be used to manufacture the Model Y crossover vehicle slated to debut in 2020. Reasons to Cheer and Be SkepticalFew companies divide investors the way Tesla does. Twitter shouldn't be the only source of investment decisions for investors, but in the so-called "FinTwit" space, the segment of the social media platform where money managers and pundits dwell, an investor is just as likely to find some noted folks saying Tesla stock is a four-digit name in the future as they are to find someone referring to the stock by the ticker "TSLAQ" with the "Q" referencing a bankrupt company.Tesla management has previously been prone to bombastic claims regarding cash flow and production targets, so some skepticism is warranted."2019 delivery guidance remains 360,000-400,000 vehicles and management said it feels the company is self-funding and able to generate free cash flow except possibly during product launches such as the Model Y crossover next fall," said Morningstar in a recent note. "We have heard this assertion on self-sufficiency as recently as late last year and then Tesla raised capital in 2019 so we are somewhat skeptical."Conversely, the company has its supporters, including JMP analyst Joseph Osha, who rates Tesla stock "outperform" with a price target of $337, about 40% above the Wednesday, Sept. 11 close. The analyst likes Tesla's market position and views rival offerings as "weak."Speaking of market position, integral to the Tesla stock thesis is understanding what market the company operates. This is a luxury car company with comps being Lexus, BMW or Mercedes, not a mass-market maker like Chevy, Honda or Toyota."Tesla has a chance to be the dominant electric vehicle firm and is a leader in autonomous vehicle technology, but we do not see it having mass-market volume for at least another decade," said Morningstar. "Tesla's product plans for now do not mean an electric vehicle for every consumer who wants one, because the prices are too high." Bottom Line Tesla StockAt 42.37x forward earnings, Tesla stock is certainly a growth name and that would be a hurdle unto itself if value stocks continue rebounding.More specific to the Tesla stock thesis is what investors' tolerance level will be for the company's spending plans, which could require capital raises. The company is building a gigafactory in Nevada, as noted above is planning a Fremont, Calif. expansion and must effectively integrate SolarCity into its fold. None of those efforts will come cheap and they don't include new vehicle launches, such as the Tesla pickup truck.Tesla's room for growth is compelling, but the company's ability to manage the cost of that growth is something investors must be aware of going forward.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post The Less Big News It Makes, the More Attractive Tesla Stock Gets appeared first on InvestorPlace.

Large pickup trucks that tow most of the profits in to Ford Motor Co and General Motors Co are holdovers from another century - with heavy ladder frames and big internal combustion engines in the front driving the wheels in the back. Now, Ford and GM are racing to design radical new takes on their most profitable models, replacing petroleum-fueled engines with batteries in a bid to outflank Tesla Inc's plan to eclipse their brands. Ford's F-150 pickup and GM's Chevrolet Silverado are the top selling vehicles in the U.S. market.

Elon Musk, purveyor of electric cars and flame-throwers , has sometimes been compared to a Bond villain. His talk of integrating humans and microchips does little to dispel the bad boy image. Mr Musk has ...

Toyota Motor Corp has started using the same type of battery that Panasonic Corp designed for Tesla Inc in some of its plug-in hybrids sold in China, sources familiar with the matter said. Toyota is using Panasonic's cylindrical batteries in its new Corolla and Levin plug-in hybrid sedans launched in China this year, one of the people said.

Toyota Motor Corp has started using batteries that Panasonic Corp designed for Tesla Inc in some of its plug-in hybrids sold in China, the Nikkei business daily reported on Friday. Toyota is using Panasonic's cylindrical batteries in its new Corolla and Levin plug-in hybrid sedans launched in China this year, the Nikkei said, without citing sources. Toyota, which also uses Panasonic's prismatic batteries for hybrids, is believed to have ordered about 50,000 of the cylindrical batteries, as the automaker struggles to secure stable supplies of high-quality batteries to meet growing demand, the paper said.

Toyota Motor Corp has started using the same type of battery that Panasonic Corp designed for Tesla Inc in some of its plug-in hybrids sold in China, sources familiar with the matter said. Toyota is using Panasonic's cylindrical batteries in its new Corolla and Levin plug-in hybrid sedans launched in China this year, one of the people said. The batteries are the same size as those that Panasonic makes for Tesla, but the composition is different, said the sources, who declined to be identified as the matter is private.

Is Tesla’s (TSLA) Gigafactory the key to its success? It depends who you ask.Tesla relies on its Gigafactory to supply the batteries necessary to power its electric cars, and though Gigafactory 1 in Nevada is only 30% complete, it is already the highest-volume battery plant in the world. When complete, it will be the largest building on the planet, and as much as five times the size of the Pentagon. Tesla says its Gigafactory was “born out of necessity and will supply enough batteries to support Tesla’s projected vehicle demand.” 5-star RBC analyst Joseph Spak has recently toured Tesla’s Gigafactory 1, and hosted an investor meeting with Sr. Director IR Martin Viecha. Spak describes the site as "impressive," but overall he remains bearish on the stock, rating it an "underperform" along with $190 price target. (To watch Spak's track record, click here). Commenting on the factory, Spak says he “saw a lot more of the operations, both Panasonic’s cell manufacturing and Tesla’s pack and drivetrain assembly,” and left with a “greater appreciation for the complexity and challenges involved in making the ‘guts’ of an electric vehicle.” But while the company showed-off increase efficiency, Spak says “it does appear that further efficiency gains are still possible.”Furthermore, full self-driving (FSD) remains a key feature in Spak’s assessment. The analyst believes FSD is vital to the margin story, but stresses that “feature release won’t help cash (as already received) unless it causes future take rates to go higher.” Beyond its cars, Tesla recently made news for its new insurance business. Tesla Insurance Services is only available in California to begin, but the company says it will eventually roll-out to the rest of the country. The service is specifically designed for Tesla, with rates “competitively priced” as much as 30% less than current rates. Consensus VerdictAll in all, Tesla is making noise for things that are not related to the actual business performance. Gigafactory 1 remains an engineering marvel, while Insurance is a neat new service, but neither necessarily is helping analysts become more comfortable with buying the stock. This is shown by TipRanks analysis of 28 analysts ratings, which shows a consensus Hold rating. In the last three months, TSLA has received 8 'buy' ratings vs. 14 'sell' and 6 'hold' ratings. With an average analyst price target of $251.33, Wall Street analysts clearly don't see any turnaround in the stock.

Brazil-based lithium startup Sigma Lithium Resources Corp has held talks with Tesla Inc and other automakers about supplying the key battery ingredient in the coming years, the company's chief executive said on Thursday. Sigma, which recently received its license to begin hard rock lithium mining in the Brazilian state of Minas Gerais, met with Tesla supplier Ganfeng Lithium , at the automaker's request. "There's a bunch of other things that they need, not just prices, but other demands which are a little more complicated that sort of restricts Sigma to almost supplying purely into China," Gardner said on the sidelines of a Brazilian mining conference.